tv Cavuto Coast to Coast FOX Business December 29, 2016 12:00pm-2:01pm EST
into high gear, but i wouldn't hold my breath. [laughter] we lost about 100 points yesterday. connell, i've got to get some shots in, you've been merciless with me -- connell: knowing your personal history, ashley, there's no better man to pay tribe to the red solo cup in my view. [laughter] ashley: i've had many an orange juice -- [laughter] connell: i'm connell mcshane in for neil, and you know donald trump has been pushing forward with these mans for thousands of what he describes -- plans for thousands of what he describes new jobs over here. and it does appear as if companies are jumping onboard, right. >> we have a combination of sprint for 5,000 jobs, and that's coming from all over the world, and they're coming back into the united states, which is a nice change. and also one web, 3,000 jobs. that's a new company. and it was done through -- [inaudible] terrific guy, and we appreciate it.
connell: we are going to get right to it this hour. you heard mention of the company one web. the founder and executive chairman of that company is greg weiler, and he joins us now. good to see you, sir, thank you very much for coming on with us. now, we look at what mr. trump had to say yesterday and, basically, to set it up, your company is adding, we're told, 3,000 jobs here in the united states. there's a man who bev become familiar -- we've become familiar with now who's the head of a firm in japan called soft bank who has this agreement with the incoming president to, you know, create 5000 jobs here in the uned states. a lot of that through sprint, he corols that company, but he's also made an investment in your company of over a billion dollars. so that's the set-up. can you tell us timeline wise how all of this came about over the past few weeks and/or months? >> sure, sure. it's all been pretty fun. as you may know, one web, we're building -- it's going to to be
the world's largest constellation of satellites. we're aiming to bridge the digital divide by 2027 and make broadband available to everyone in the world. 50% of americans have limited access to broadband. so massa had met, we had met with massa about an investment, we were raising money this year again, and in those discussions he became excited about the mission and what we're trying to accomplish globally. and then when he met with president-elect donald trump, he talked about this 50,000 jobs and $50 billion -- connell: right. so the timeline of all that was you were meeting with him before he met with the president-elect or vice versa? >> yeah. so he was -- we were meeting with him before he met with the president-elect. then he meets with the president-elect, and he had talked about a number he was going to invest. and after he met with the president-elect, he boosted that number to a billion dollars, and
there's a lot of excitement, of course. and then we looked based upon his promise, we looked at the jobs we were creating and talking with all of our suppliers and our whole base, and over the next four to five years, and that's where we ended up today. connell: so you have a larger investment after this gentleman's meeting with the president-elect. what was the conversation before that? how much money were you talking about, and now you have, as you say, over a billion dollars. >> well, we haven't released the amount that was decided before that, but suffice it to say he wants to bring it up to a billion. his portion is a billion, and we have a little over 200 million from our current investors which includes qualcomm, for instance, and coca-cola -- connell: so why did he do that, do you know? in your conversations with him, was it something directly related to the policies that we expect to be put in place by the trump administration? why increase his investment in your company? >> well, i think, first of all, he was very excited about what we can accomplish for the world, and he became excited about accomplishing his, meeting his
promise and his goals that he had discussed with the president. so i think in combination of the policies the president-elect has discussed putting in place, the tax policies and the like have been exciting for massa and a number of oh -- other businesses. so that's led to higher and higher investment in the u.s. as we see in the market. connell: 3,000 jobs coming here to the united states. would we be having in this conversation, by the way, had hillary clinton won? >> um -- [laughter] i don't know. i can't say that. connell: so -- >> but -- connell: -- it's possible, in hewords. some of this was in -- and you know what some people say, oh, mr. trump's just taking credit for something that was already in the works, but it seems like you're saying there w079 be as much in the works had it not been for his conversation with massa. >> i'm fairly certain there wouldn't be as much in the works without donald trump, without president-elect trump. he's fanning the flames, he's trying to help growth. he's not going to build the
companies himself, but what he wants to do is inspire and create people to, you know, get people motivated to invest and build the jobs, and it seems to be happening. connell: yeah. and he, you know, sprint -- and that's another story altogether, and now with your company what i, you know, and we haven't really talked about the details of what you do, but you described it a little bit earlier in the interview. it does strike me as, well, this is a company that wants to do things all over the world and make it easier, essentially, for people to have internet in places where it's difficult for them to have internet, right? so that wouldn't necessarily be a company that pops to mind to say they need to have workers in the united states -- >> well, we could have workers anywhere, we do have workers all over the world, and we evaluate many different countries for where we're going to be deploying asset is the and resources. but our -- assets and resources. our mission is to provide broadband to everyone, you literally have half the world that can't benefit from the cool
internet things we are doing in the u.s. and all the internet companies, half the world without -- isn't part of the market. connell: right. so you have 3,000 people, right? some of them are going to be engineers, as i understand it, they're all going to be here, right, in the united states? couldn't you find similar talent elsewhere and do so for cheaper even with the, you know, the new policies that you expect to be put in place here, taxes, regulations and everything else? wouldn't it be cheaper to do that overseas? no? >> maybe, maybe not. some of the technology base that we have in america is really outstanding. and i think the push to continue to build the space technologies that we have in the u.s. is really important. on the aerospace side. so we have a pretty deep technology base and capability that just needs to be unlocked. connell: okay. but if you didn't do it here, if you didn't hire the 3,000 here, would massa, the japanese investor, have given you the money, the billion dollars plus? >> i -- the investment would
have come in even -- some investment. i don't know the total, you know, the total amount might not have been a billion, but it would have come in. i think, as i said, the billion came about bringing it up to that number to make it a big, round billion dollars based upon the $50 billion commitment. but there is a lot of excitement and the market size, it's almost four billion people without internet access plus all the aircraft and enterprise, you know, businesses around the world and ships that are really desperate for internet. connell: and if this is a business, at least from what i've read and the little i know about massa, that he's interested in, that he wanted to, as you say, he may have, you know, invested in anyway. but it sounds like what you're saying is at the end of the day, he came to you and said, well, all right, we're definitely interested in your business, greg, but we'll give you even more money if you have people here working in the united states. is that fair? >> well, it wasn't a quid pro quo on if the people are working in the u.s., but we did explain that we would have people working in the u.s.
it was naturally going to happen, some portion of them, and now there's an even greater drive towards creating the jobs in the u.s. based upon the excitement and all the press around the number. so we're growing, and we're growing quite fast, and we're going to be definitely creating a lot more jobs in the u.s. because of it. our background -- connell: go ahead, no, finish that thought. i'm sorry. >> yeah. so our background was we had our first round last year about $500 million. and this year we raised just now $1.2 billion, so we've got a little over $1.7 billion of funding to date. our project, our initial first generation of satellites will cost about $3.5 billion, so we have all the equity we need, and we have debt on the other side of that. and we'll provide over tenter bits of second of --er the bits a second of capacity. it will have an incredibleu knot on a global basis. connell: with people having more access to the internet.
finally, tell us how will the environment, in your view, be different under a president trump fobusinesses than it has been for the pasfour to eight, even longer years? >> well, i think the fundamental change that i just hear repeatedly is the change of the tax structure, that allowing u.s. businesses to have a more competitive and fair environment for the tax policy, and i just hear that time and time again. it just seems simpler and clearer. so that's the exciting, an exciting thing to watch for. it's not done yet -- connell: right. it isn't done yet, but that is the promise. greg weiler, good luck with everything, and thank you very much for explaining it to us all today. we appreciate it. >> thank you. connell: all right. one web found orer and executive chairman. you know, when these headlines hit after that story broke, media hitting president-elect trump from kind of all angles, calling him out for, as we were just talking about, taking credit for making these deals. it does bring up some larger questions. we have from the daily caller
katie freights with us and tom sullivan as well. katie, i was digging into it myself a little bit with greg, but the assumption when you read a headline like this is somehow president-elect trump does not deserve credit when you read a headline that says he is, quote, taking credit. what do you think of what you've been reading the last day or two? >> right. a lot of the headlines have been disingenuous. they make you think maybe he shouldn't have credit for this or that it's old news, why is he bringing it up. the first time he talks with massa was a month ago at trump tower. and while he is taking credit for incrementalism with one web and those 3,000 new jobs, he absolutely had a part to do with this. and while it mht not have been 100% of it, because of him o web is getting more funding from soft bank than it would have otherwise. connell: that's exactly what greg said, right, tom? he basically staid, hey, listen, i had this conversation. this guy, massa, was interested in my company. he likes what i'm doing, he was
going to make an investment. he was up front about that, even before trump -- >> right. connell: but he says it wouldn't have been this big an investment if it wasn't for these trump -- connell: i'm sorry, katie, i want to get to tom on this. >> we'll never really know exactly what dollars would have flown if hillary was elected or not, but what -- if you go back, it was october, before the election, when massa met with the saudis and came up with $100 billion fund to invest around the world. well, around the world they've got plenty of choices, and they have chosen to put at least half of that here in the u.s. and maybe more. so it goes back to the bully pulpit. and all presidents have the bully pulpit. and i think barack obama was using the bully pulpit to cast a negative view of corporations and busine, and donald trump is saying we're open for business, we are business-friendly, come one, come all.
i think there's a lot of boardrooms right now and especially like greg weiler said, they're sitting back saying we are hoping those taxes will go down. he didn't mention regulations. connell: right. >> for a lot of companies, that's an impediment to them. i think a lot of countries are looking at this with excitement. connell: yeah. because his cost structure, right, katie, as i said to him, maybe you do this cheaper somewhere elsebuhis point is, a, i get more money from this investor but, b, what tom's saying, i can -- i'm hoping -- do so in a lower tax environment which long term is much more beneficial. >> right. it's the same thing that happened with carrier. democrats are never going to be happy with what donald trump does. either he overestimated the jobs he was going to save or, oh, there's still jobs going to mexico. they're going to pick and pick and pick at the things he does that are good for the economy because they just can't stand that good things are happening. connell: now, i will say this, tom, and then you can also make the point you were just about to make.
to be fair, massa has an interest in all this that we did not mention with greg because it doesn't necessarily involve his company directly, but this is a guy who controls sprint and would love to get that merger done with t-mobile that has not been able to go through. so there could be, and we should at least point that out, that it could be a motivation for this guy to curry some favor with the incoming administration. fair? >> but that's -- everybody always does that. it doesn't matter what the administration is. you try to schmooze whoever is at 1600 pennsylvania avenue. but this is -- i understand that the democrats are looking for lines of attack, and that's what they're supposed to do, you know? they're the loyal opposition. they're looking for lines of attack to go after donald trump. the problem with line of attack is they're also questioning why did we not connect with people, why did we lose so badly not only losing the presidential election, but the governorships and the legislatures and everywhere else. connell: right. >> they are deeply in trouble, and they're looking in the mirror and saying what is wrong is because of the fact that
they're not getting on this pro-america, america-first message. connell: katie and tom, thank you very much to both of you. we're going to talk about russia. you may have heard today that sanctions against the russians could be coming and literally at any moment. we may see an announcement on this in the very near future. is there a risk to that announcement though, a risk of making the russians even more angry? that's next. ♪ ♪
lasted for nearly six years now and has claimed hundreds of thousands of lives. ceasefire in effect in syria. meanwhile, u.s. sanctions against russia over the hack of the dnc could be coming soon, maybe as soon as today. president obama under pressure, meantime, to prove it was, indeed, russia that interfered with the election. russia's vowing even more retaliation if the sanctions are imposed. we're joined by tom kellerman, cybersecurity expert. first of all, on the idea this has to still be proven? is that true? we've been told by intelligence sources and the like that, yeah, it's definitely the russians. should there be more public proof, or are we god there? >> i think we're good there. it's been obvious the russians have waged a cyber war for the past four years against the u.s. government and critical infrastructures in the u.s. connell: okay, so we have a president on his way out, obviously, in the united states that as a parting shot, it looks like, will impose some sort of retaliation for what you're talking about, sanctions and/or cyber warfare.
is that a good idea with a new president that may have a new policy? looks like he will have a new policy. >> well, it's a good idea, but it's insufficient. we need to elevate cyber command to react to defend america from this overt counterinsurgency we're facing in addition to government agencies and politicians. connell: okay. be specific or as specific as you can. how do we do that? to the extent we understand how conventional warfare works and one side hits, the other side hits back. in the cyber world, what are you talking about specifically if you say it's insufficient? >> there should be a technological response, a proportional response against the activity of the hackers inside u.s. systems to kick them out of systems, to take down their command and control. and more importantly, to undermine the trust between the cyber militias in the russian regime. russians are using criminals as cyber militias to attack u.s. and nato assets, and they've been doing so since their invasion of crimea. connell: all right. first point, we can do that, we can kick them out of our systems, is that something we, i
mean, it sounds like a dumb question, but something we know how to do? >> we do know how to do it, but certain sectors are more capable than others. for example, the energy and industrial sectors are highly vulnerable. in fact, they're quasi-naked to these types of attacks. a dhs and the nsa need to be in power to go after their own command and control that exists in the dark web forums that are eastern european and russian-speaking. connell: now, on this point about using criminal, you say to make it so that they don't trust each other. so, you know, plant some stuff that they don't know who they're working, you know, they think the russians are telling them to do things they're not, just build up mistrust? is that the idea? >> we have to develop mistrust between the russian cyber criminals and the regime thaifs been acting as cyber militias for the russian regime for the past three years. in addition to that, we need to deploy things like deception technologies into ecosystems to make them question whether they actually have a true footprint or not and to be able to track their activities before they
leverage more destructive attacks. when we leverage these sanctions in the next 24 hours, we will see a visceral cyber response from the dark web of eastern europe. connell: that's what's being promised, certainly. and after all of that, following january 20th, this all might be undone, right? the new president, looks like he'll have a completely new policy. >> i think it would behoove president-elect trump to recognize the very real cold war that is occurring in cyberspace be throughout infrastructure. the future of the u.s. economy is dependent upon the u.s. government being able to defend against russian cyber takes. connell: haven't got much indication he'll move in that direction, but you never know. i mean, part of this is make them thing one thing -- think one thing and do another maybe. tom, thanks, tom keller match. >> thank you. connell: now, israel, obviously, if you were paying attention yesterday, you though this, just not happy with john kerry, the current secretary of state, after his speech. and what about mr. trump's pick to be the secretary of state, rex tillerson?
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♪ ♪ connell: so our weeklong series continues, cabinet close-up x today it's the next secretary of state pick, rex tillerson. first, a clip of mr. tillerson with neil back in '09. neil: what do you think of that mentality that now seems to grip washington even in the throes of this wall street freefall that they look askance at successful companies and companies that do too wellsome. >> well, i think it's, i think what it's illustrative of is a lack of understanding by many policymakers and the public at large over the risk/reward balance that goes in, particularly into our business, in the energy business. connell: all right. so government and business there. meanwhile, israel is up in arms over the current secretary of state after the speech yesterday
from mr. kerry. so would rex tillerson be different, maybe be more welcomed by israel? emergency committee for israel executive director is our guest. what do you think, noah, about tillerson coming in, kerry going out specific chi as it relates to israel -- specifically as it relates to israel? >> i think in israel they're incredibly relieved and looking forward to it. kerry is a bit obsessed with israel. it's been really the focal point of his career here as secretary of state, and hillary clinton and barack obama also were very much devoted to it and very critical of israel. and i think tillerson, we don't really know yet what his actual views are on israel, but he's not going to be the president of u.s. foreign policy, he's going to to be the secretary of state, and he's going to help enact and execute the trump administration's agenda. and we know that the trump adnistration's agenda is a very pro-israel agenda. connell: we've been hearing from the top on this, mostly via twitter, donald trump going back
and forth even with benjamin netanyahu yesterday supportive of israel. to your point, we don't know a lot about tillerson. we've been led to believe that he has this relationship with vladimir putin through his business in russia, but he's kind of an open book. >> right. and we'll get a lot more clarity during his confirmation hearings. you know, in the past someone who was in the oil or energy business would have had a lot of dealingsitarab countries, and as far as israel is concerned, there would have been some skepticism about that because he would have been been hearing for a number of years a lot of complaints about israel and a lot of claims that israel was the source of american foreign policy problems and the source of instability in the middle east. connell: right. >> but tillerson now, to the extent he's had dealings with the arab countries, they have a new threat which is iran, and this is because of the obama administration and the iran deal. i actually think to the extent that tillerson has had a lot of dealings with the arab countries, he's heard a much more pro-israel messagety sirous of the united states to push iran back in the region.
connell: that's interesting. you're right, in the past that's exactly how things would have been associated with a big oil executive. what'd you think of what happened yesterday? ther the key speech -- kerry speech, whatever term you want to use, certainly went after israel, and netanyahu comes right back at him. does any of that matter, what we saw yesterday? >> i think it matters a lot for the obama administration and the legacy of the obama administration that this is a group of people who decided that they wanted to go out on a very anti-israel note and on a note that united, actually, it was politically very foolish because it united the republicans behind trump. and it divided democrats. i mean, obama's been getting criticized very aggressively by pro-israel democrats -- connell: schumer and congressman engel and others. >> oh, numerous people. and the speech isn't going to actually matter in the long run, but it's going to matter for obama's legacy and the kind of things that kerry said in the speech trump and his people can come? and, basically, un-say them and
say things that are better and more accurate. and meanwhile, everyone is going to remember that this administration, to its last dying breath, wanted the world to know that it was anti-israel. connell: right. and -- you're right, the trump administration will come in with completely, it looks like, different policy. noah, thank you, we appreciate it. now, democrats are regrouping or trying to, and they're planning for a fight in the next congress. so we're going to talk about that coming up. why pushing through some big trump agenda items might not be kind of as easy as it's been made out to be even though republicans have control. that and more coming up, "cavuto coast to coast". we'll be right back. no matter how the markets change... at t. rowe pri... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. (snap) achoo! (snap) achoo! achoo! (snap) (snap) achoo! achoo! feel a cold coming on?
♪ ♪ connell: so we have more now of some democrats calling for save health care rallies before donald trump even takes office as president. so one of the questions becomes are they kind of setting themselves up for even more upset after a tough election? and we have joe trippi and ron christie with us. let me go to you first, joe. what do you think about the strategy of the democrats here before trump takes over? >> well, look, i think you're going to see a lot of people calling out the things they like about obamacare, everything from, you know, if you have a child under 26 who can be on your health care to pre-existing conditions, all those things. they're going to raise them, raise the noise level or whatever you want to call it,
the protest -- you know, that we want to keep those. because i think one of the big problems trump has is i think he's going to have an easy vote for repeal, but the replace part when you repeal all those popular parts of obamacare, how do you replace them, how do you keep them without keeping some of the things people aren't happy with? i mean, that are sort of required to make it all work -- connell: yeah, it might be -- >> so i think the protest is going to be like that. connell: trump's going to talk about wanting to keep, you know, for example, keep your health insurer -- under your parents' health insurance under 26, pre-existing conditions, things that joe's talking about. he does talk about wanting to keep that, but what about that challenge of replacement? people could turn very quickly to being angry about repeal and replace if there's no replace, right? do you think it's going to be in place in time? >> i think that's right. good afternoon, connell. i think what you're seeing here in washington is a lot of republicans both in the house and the senate taking a look at this and saying let's go ahead and repeal this, but let's wait two years to figure out exactly
what the replacement mechanism is going to be. and i think that's where it's going to hurt the democrats. the democrats sent out a letter signed by senator schumer, nancy pelosi and bernie sanders saying that the republicans are going to ram through a dangerous bill using a budget procedure. well, that's exactly how they passed obamacare. and so i think with this two-year delay of allowing all sorts of options to be laid out before the american people of what a replacement would look like, i think that will politically be a winner for republicans and not a losing proposition. connell: it'll be interesting the next -- and to kind of pick up on your point, ron, be interesting to watch this whole dynamic take place. we were talking about this a little wit in the last election -- little bit in the last segment. i think conventional wisdom wise, we've become so accustomed to the fact that the parties hate each other, nothing gets done, and let's make the other party fail is our main goal or whatever has been painted of the last eight years. is there more opportunity for
more agreement than not? the new minority leader in the senate, chuck schumer, to me, at least, has incentive to work together to make himself look good with the new president whether it's on israel or things like infrastructure spending. could things actually get done, or am i being overly optimistic? >> i think things might be done, but it won't necessarily be because the parties are working better together, it's going to be because the republicans have enough votes in the senate and the house to pretty much move the republican agenda as long as they can hold everybody together and get a few democrats to come. there are plenty of red state democrats that are going to be up in 2018 -- connell: right. >> so i think that's there. but, look, we're in a polarized america. it may have started, you know, whether it started 12 years, 8 years, 4 years ago, it doesn't matter, you know? people are choosing up sides. there's going toprotests, there's going to be people just like the republicans did in trying to hold and on to instruct obama, there will be members of the democratic party
doing that in the house and the senate. connell: right. >> and there'll be activists out there trying to do the same thing. connell: so much for my optimism. [laughter] ron, what do you think about the idea that if the democrats do this, as joe's suggesting and do put up this kind of stiff resistance, that there's blowback from that? is this a risk -- you know, you saw it from the republican side when president obama was in office. do you think there's a risk on the other side too? >> i think there's a risk but, connell, i'm a perpetual optimist. i really think with ten democratic senators up for re-election in 2018 in states carried by donald trump, i think you're going to find a bipartisan way to move ahead. i think these senators, you look at someone like joe manchin of west virginia who believes his state has been under attack under the obama administration's coal policy, i think we can find ways to work together and most importantly, as it relates to foreign policy, with israel right out of the chute on january 20th, i think you're going to find bipartisan consensus to get around this ridiculous united nations
resolution -- connell: that's where you bring schumer in. but the other point is certainly well taken. joe and ron, thanks to both of you. we appreciate it. >> absolutely. connell: now, this next story very interesting economic story. we talk about the minimum wage all the time. well, here in cook county, illinois, it's really reaching a boiling point. the debate over the minim wage. so let's bring jeff flock in from there. he has the details. tell us about it, jeff. >> reporter: this is the hazard, connell, when you don't let the free market rule, i guess. i'm standing in the middle of main street in down barrington, illinois. i am standing on the side of the street, though, that is in the county of lake. across the street, if i cross over without getting run over, i will be in the county of cook which just passed a new minimum wage law which provides that the folks that work in cook county by the year 2020 get $13 an hour. across the street there in lake county, $8.25 an hour. i've got a graphic
representation, by the way, that shows you where we are and shows you just what happens when you kind of get a county line bisecting a town which is not tremendously uncommon. the folks in cook county, in barrington here, said, you know what? this is not fair. we've got one side of the street paying $13 an hour, another side paying$8.25 an hour. we can't have that. we talked to one of the village trustees this morning about what they did. >> margins for a lot of these businesses is pretty slim. so to actually start increasing salaries that they have to plus paid sick time for all workers would be, could be a detriment to a lot of businesses in this area. >> reporter: so what barrington, illinois, did, connell, was they opted out of that minimum wage. they're able to do that legally. the problem is, there could be some blowback by the folks in cook county who don't like their law being flaunted.
they could potentially start to reduce the amount of, you know, funds that go to the roads, the county roads that run through the town. but, you know, it's a tough -- [laughter] it's a tough situation. the folks in barrington here say they're not necessarily opposed to paying more money to their workers. in fact, many of them do. but when you don't let the free market determine it, then you get these kind of weird situations that are not really fair to anybody. connell: it is weird. it's like come back in a few years, that one side of the road you're on might be paved perfectly, the other side may have a bunch of potholes, whatever the case may be. in flock, safely crossing the street, although we do advise he uses a crosswalk next time. those cars were nice to you, i must say. >> reporter: wasn't convenient to our picture, so i did it there. connell: look both ways. >> reporter: everything for a good picture. connell: he's walking right into the construction site. there he goes. down goes flock.
he's like the ultimate storyteller, isn't he? that jeff flock. well, full stream ahead. maybe not. the market pro coming up that says netflix could be facing some problems next year. you'll find out why. there's the stock at 125. how about snapchat? could it be the next facebook? we'll talk about it. we'rback in 90 seconds. ♪ ♪
watching snap very closely because snap's ipo road show, well, that message is going to be, hey, we're the next facebook, not the next twitter. we're watching snapchat's ipo, and next year will it be at the nyse, will it be as nasdaq? they're going to try and convince investors that they can be a content media powerhouse as well. of course, run by evan spiegel, he's 26 years old, he's the founder, and he's going to go out there and pitch how strong and a visionary that he is. that's what they're going to say he is, especially for the peer group of millennials. they'll tout they have over 150 million users, at least that visit at least once a day, 20-30 minutes per day. they have the spectacle glasses that are equipped with a camera. and take a look at facebook versus twitter. you can see what a winner facebook has been versus twitter which has been --
connell: we're taking a closer look at netflix now. it was the top performing stock last year in the s&p 500 when it went up by and 4% -- 134%. this up, a 9% gain for the year. moneymorning.com chief investment strategist keith fitzgerald is our guest on netflix. you wonder about that. next year they're going to try -- good to see you, keith -- to do more with less at netflix. they've got a lot more content, spend a little bit more money but not a ton and hope to not raise subscription fees.
pretty challenging. will they be able to pull it off? >> i think challenging with a capital c. you're talking 67% more programming hours but a 20% increase in budget. that's a high risk move. i think that the alternative is to look for companies with deeper pockets because really what's happening is netflix has got to radically change subscription base or dramatically increase fees to keep up with that. connell: so at some point they're going to have to charge people more for what they're doing if they want to go down this road, is your point. >> well, again, either charge people a lot more which damages their reputation as a low-cost alternative to cable, or they're going to have to radically change the subscription numbers. now, i'm not sure that's possible given how much competition there is from things like amazon and google and hulu and on demand services. 89% of millennials watch on-demand tv. connell: and i guess the advantage that some of these other companies have, for example, amazon. if you're an amazon prime member, you're getting all the
benefits of that membership through the items you order on line, and you're shopping with amazon, and you also get the streaming video. google, you mentioned, so much more that google does other than streaming video. but netflix, this is their main game. and what's the future hold for them, do you think? >> well, to me, the situation reminds me a lot of blockbuster. and, you know, the hollywood video situation. yeah, because here's the thing, you know, blockbuster and hollywood video were really put out of business, essentially, by netflix. connell: wouldn't that be ironic? [laughter] >> exactly. now you've got a situation where netflix is the one at risk because i don't think they've changed far enough, fast enough, and they certainly don't have the wallet to compete with amazon, for example. connell: so what do they do? we're having a conversation that maybe people will have a few years from now because netflix is still, by most measures, a very, very successful company. but what's the long-term end game for netflix? is it to keep going, charge
more, hope to grow subscribers, as you say, or maybe at some point combine with a huge media company? how do you see it all ending up? >> you know, that's a very interesting question because i think that landscape is going to change radically in the next few years. they could try to go it alone, but ultimately i think the competition's going to get the better of them. and as inconceivable as it is today, i think netflix sells out or is acquired by one of these deep pocket competitors barring some sort of massive management change. connell al well, a lot of things would have been inconceivable before the aol/time warner merger. you know what? maybe you're right, maybe long term that is what happens. but the model, investment wise do you invest in these types of companies whether it be netflix or similar technologies? and if so, which is your favorite just to -- forget consumers for a moment in terms of as an investor. >> well, as an investor, i think you've got a slightly different equation. you've got to look for sustainability, you've got to look for innovation, and you've
got to look for profits all at once. so it's not just a matter of finding the next best thing. you've got to find the next, most profitable thing. and that's a very different equation. so if i'm looking at this situation, what i'm doing is looking at netflix and saying how do they compare versus other horses i could bet on. i'd rather bet on other horses that i think have the longer term perspective necessary to go the distance than i would at netflix right now. connell: okay. your favorite horse is, what? you didn't mention others. >> i'd go amazon for video. connell: and all the other things that come along with it. good talk. there's amazon at 763 nearly. keith fitzgerald, good to see you. okay, moving on to a different topic here. the migrant crisis overseas is something we have talked about a lot, it showcases some cracks in the european union and certainly did so for this year. so as we come to the end of 2016, could we just see a complete unraveling of the e.u. next year? wel take that after in.
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♪ ♪ connell: i don't think we'll get much argument if we say there have been some big changes over in europe this year, whether it's brexit and david cameron in the u.k. stepping down after that, renzi resigning in italy, francois hollande stepping out there in france. so now the question is angela merkel in germany as we head into 2017, you have the refugee crisis posing big issues for her there. former member of the u.k. parliament john brown joins us now, and, boy, we're talking a year from now, john. angela merkel still running germany? what do you think's going to happen to her? >> yes. well, i think she's caught at the moment, connell, between the right -- [inaudible] and the right under mr. gabriel,
and the right want, of course, a stop to all immigration, and they're trying to get detention camps or transition camps they're called. and, of course, the left doesn't want to hear it. the right have already done a deal, germany'doing a deal with turkey to hold back and even take back some of the immigrants in return for money. connell: right. >> and they're trying to do that with nigeria and the left is not supporting it. so she's sort of caught in a cleft stick at the moment, and the germans are confused, disappointed and fearful, and a lot of germans are leaving germany as a result. coming to the election, the fact is it's a coalition that she heads, and she's much weaker than before. but there are no substantial alternative people available to take over who could forge a coalition. and so i think she will survive, although wounded and battered. connell: talking about one of the more recent stories, these migrants, 54,000 of them getting grants, money to return home. so that's basically paying these
people to leave the country. your point about the internal politics in germany, we heard before brexit no way this this was going to pass, and we heard before donald trump was elected, no way that he was going to win. there is something to this populist movement, it's taken hold in italy to the earlier point that we made as well. so, i mean, even if she's the favorite to hold on because of the internal structure of the politics, there's always that chance, right, that somebody comes along or something unexpected happens? it's been kind of a time for that. >> yes,com, you're quite right -- connell, you're quite right. the populist movement in europe, england -- britain, rather, and the united states is huge. connell: yeah. >> it's basically a citizens revolution against leaders who heap on things like mass immigration, huge banking debts, massive government debts which can never be repaid and say we'll manage. well, the people are saying we will not manage. we want to change the government, and we want some sense brought back to the equation.
and we want proper umpired immigration and controlled immigration, and we want some control over our finances and borrowing. connell: so what will europe -- >> and i think it's massive. connell: what will europe overall looks like? let's just say merkle hangs on, what will the european union look like in a few years? does it survive intact or slowly breaking up on us? >> i think it'll have to adapt or collapse. it'll have to adapt by introducing much more democracy as opposed to appearing democratic, and so it'll have to increase its democracy. i think it'll have to return some very considerable powers back to the member countries, and it will have to abolish the she can ham plan. the problem is allowing mass immigration to have free movement -- connell: as we found out the hard way on all of that. you're right about that. we have to run now, john brown, happy new year to you. >> thank you very much.
connell: welcome back to "cavuto: coast-to-coast." i am connell mcshane and for neil cavuto. donald trump, the president-elect has been pledging to create jobs and it appears he's getting some companies on board with this plan. i spoke with the founder of one of those companies, a company called one web about the plan they have to add 3000 jobs. >> it seems like you are saying there wouldn't be as much in the works had it not been for his conversation. >> i am fairly certain it would be as much in the works about donald trump and without president-elect trump. he is fanning the flames, he's not going to build the companies himself, what he doesn't want to do is inspire and create people
to get people motivated to build jobs and it seems to be happening. >> the former governor of minnesota joins us, tim palenque. what do you think of that donald trump is inspiring more hired that would ordinarily take place. there is some criticism as i'm sure you are aware that he's taking credit for a job edition that he shouldn't take credit. where do you come down on all of this? >> people want to be part of something positive come exciting and ha momentum. he is setting the tone part of the leadership responsibility and opportunity when you have the bully pulpit as he does. setting the tone is important. on the facts imagine, there's some critics are news outlets say in these jobs are a chunk of them, particularly the ones related to strep were announced earlier so we can take credit for it. nonetheless in the toes of the leaders and important dynamic and i give credit for it. connell: greg wyler is his name, the ceo. he told me the japanese investor
was going to make an investment in his company. he liked the company and he was going to make an investment in it, but that got even bigger once mr. trump got involved and that is why there is more jobs than coming in now, previously talked about. i guess that's a good thing. you always look into some sort of a skeptical eye and then could there be something we're missing here? is this all good to you? >> i think it's all good here in a world where the facts get all glory to the chiming of what got announced, what was committed and whether this would've happened in whole or in part you've got to be a little skeptical. that's healthy. nonetheless come when you're the leader of the country, you've got to set the tone. if you've got an out eight, positive confident outlook, your team will key off of that. if they sense that in donald trump and say it's even more positive than i thought i'll put another increment to the positive on the table for this deal, th's great. we should celebrate.
>> a picture, we look at things the next few years. what will significantly change in terms of an tennis for these companies? even on the state level trying to get companies to stay and whether it's tax incentives or other things. sometimes if difficult for a technology company like the guy you just heard from one web. you can do things cheaper overseas than we've been told some jobs will never come back. maybe that's wrong. maybe some will come back. what do you think? >> or someis important as a men. if you look at the agenda of pain tax reform, regulatory reform, health care reform, immigration reform in an environment where capital formation will be encouraged and so discouraged, that's an environment where business is not to blame into. like predictability, certainty to deploy large amounts of money can make investments, you want a framework. donald judd's challenge will be to move from marketing one-off
deals which again are all to the good to move into a policy framework that is permanent, predictable and people can rely on and invest in paid issues like tax reform and the details of that and getting it done are going to be where the rubber hits the road instead of one-off deals with individual companies. connell: were about to talk about that in detail, the tax reform question and fewer regulations people are also focused on. what should be priority a for the new adminition and what about the odds of getting that done? i have a lot of control, a lot of leverage in the congress. >> even an average president can get a couple top priorities done in the first 100 days or 12 months or so. he will be well above average and it's got a fully republican congress, so there should be no excuses for why they can't get all that done. if you want progrowth, pro-investment, pro-capital formation and deployment and get business people excited about returning are growing in america, that is the centerpiece
of the agenda. >> dpu agree with president obama on issues, you would point to the first two years when he quote, unquote got things done and had control of the congress. different priorities. >> no question. they'll include not just tax reform, regulatory reform, immigration reform, rebuilding military. if donald chun can get half of that to be a productive president. connell: good to see you, governor. thank you for coming. tim palenque, former governor of minnesota. on the spine of tax reform, it is our many to the governor's plan to look at a quick turnaround on that. the house republican policy chairman, congressman luke messer as our next guest. played a big role in this. pick up on govnor palenque's point. can it get done quickly? >> we've got a lot of work to do in the coming weeks and months. tax reform will be a big part of that. donald trump promised it, mitch
mcconnell has promised as well and you get to work on that right out of the gate in the first few weeks of congress. you mention the tremendous regulatory burden that's regulatory burden that come from the obama administration. literally hundreds of regulatory regimes asked in the last seven and a half years, $700 billion annually added to the burden, the regulatory burden on our economy which is a giant tax on the american people. everyone of those regulations is passed onto the consumer. >> won't that be more difficult in some ways? a lot of? a lot of special interest about the members of congress that have pet projects of the companies in industries where regulations are in place. some can be undone through executive order, but once it gets to your level and needs congressional legislation, will that be more difficult than some of the tax issues? >> when we first got back in congress, work on a couple bills
that would make that easier. when is the rain site which resource article i power forever regulation that would have $100 million impact on the economy that congress should act to approve those regulations before they come to the midnight both sides, the obama administration has passed literally dozens of regulation in the final weeks of their administration. we want to bundle those together and blow through the congressional review act to have those rain back in as wl. tax reform will be important, too. the advante is much of the tax reform effort can be passed to reconciliation which puts the filibuster aside and let the stew albert. and messier prior speaker also mentioned, we get through the hard work of energy reform, health care reform and the work to get this economy going again. i think people are optimistic about what can happen. you see and the stock market and in this new announcements of job creation. we just now have to make sure the optimism continues by
delivering through congress. connell: we talked about having a skeptical eye on some of these issues. one of the things when it comes to taxes is to say can this b done and what is known as a revenue neutral way? can you really cut taxes and increase spending, which is also being proposed more infrastructure spending as a matter of policy by this new incoming administration and not inease the deficit and not take on more debt. it sounds good. it sounds like it may beut from other areas, but we've seen people try this before and it's not that easy. >> it's not that easy to do. the number one way to solve fiscal challenges of how the growing economy. we need to make policy decisions to get our economy going. >> you are willing to add to deficits in that camp in the short term in order to get a growth. that's the trade-off. >> we have to work our way through this. we've got a lot that needs to be done. frankly it had stagnant growth over the last eight years.
we can pass meaningful tax reform to look athis economy growing again. the best way to have more tax revenue is have more jobs. tree into that's where you get the push and pull and make motivating i'm sure you know is going to the office of management and budget has voted against raising the debt ceiling, seen as a hawk on the deficit and debt and may be pushing back internally within the administration on some of these things. >> we still had a fiscal crisis. we still have the challenge of balancing our budget and making sure we are not stealing their future of our kids and grandkids. we've got to get a growing economy working as well. we will find her way through these issues in the coming weeks and months. i will be a lot happier with the decisions we are able to make with president trump then i would have been if we had a different result in the election a few weeks ago. connell: thank you for joining us. i believe you thinking about running for president. next time around. we'll take it as a guest season.
thank you very much. we are told, by the way, president-elect donald trump is now working himself on his inaugural speech right now. but spring break remaining to talk a little bit about this. played joining us from d.c. >> some of it himself in some of them at the top advisors this is starting to come a friend of mine for president-elect is bare now, his team 22 days and saw vietnam girl. the white house press secretary sean spicer telling us they're preparing for that speech which will be the first of mr. tron's presidency is on his agenda for today. we are told he will have his closest advisers around him to work through the initial draft here and that includes the following. steven miller, steve bannon, raines primus, kellyanne conway, familiar names to her for a while. mr. trump met yesterday with historian douglas brinkley by
the way he said after the meeting the two had spoken about inaugural's past. something starting to come in focus as it gets closer. by the way, one thing that might not happen during this transition period is the announcement of a supreme court pick. spicer telling hugh hewitt, the radio show host this morning that will probably happen after the inaugural. here's what he told us. he said he has talked to a lot of folks. he solicited some input, but i think i wouldn't expect an announcement until probably coming in upcoming is officially the president of the united states. the incoming white house chief of staff said earlier this month that the selection to replace antonin scalia could come before or after the inaugural, but now it appears that the latter is more likely. >> i guess that makes sense. thank you very much. we will watch out for this a macro which will be different because everything has been different so far with this president-elect. sean spicer come you just heard
about from blake will be on with trish in the next hour on fox business. certainly stay tuned for that. the president-elect and don king downplaying his business ties. a lot of questions about conflicts of interest and the like. the media continue to assess questions. whether or not the despair we will take up after the break. only in america. with the xfinity tv app,
connell: about was the president-elect is missing as you heard his business ties democrats are still calling to divest about his businesses. as a matter of fact, senator ben cardin has even gone as far to say the president once he is president should be impeached if he does not divest. that is something they'll took him to task about. listen to this verse. >> we don't want impeachment. we don't want a constitutional crisis. >> we want this done before january the 20th. the constitution started there. we can change the constitution. >> you can't throw that into a blind trust. it's very different than those who come before me. what is he supposed to do? >> that's the constitution. he's got to comply with the constitution of the united states. not something we can say maybe, maybe not.
>> what does it say to do with the real estate empire the world over? gisela? >> either a salad or put it in a blind trust. that been in the practice. >> trusted never doubt what the multitrillion dollar slots of real estate, rate ocean mark >> well, the constitution has served us well. there's a reason why we don't want foreign government inappropriately influencing our electorate -- public officials. donald trump needs to comply with the constitution. >> one specific cause of the constitution, are friend and a senior video reporter. good to see you. the idea that the media is maybe making too much of this where there are specific conflict of interest questions that still need to be answered. >> this is a classic trap response. you people aren't making too much of this. he will have more conflict than any other president.
at this point, trump can't win. if he sells its real estate that could appeal to create can't the ventures. we don't know who was behind it. on the other hand, he does have business operations in more than 20 countries including countries -- connell: that's the point -- even if they did and even if they may just be a country doing business with the united states on trade for any other number of issues. my point on this would be if he can keep these business interests the way they are and that's legal and is not in violation of the cost of the constitution, fine. but he still needs to answer questions or at least ask those questions. he's still going to be asked this question. i think that's fair. >> trump has made this a bit of a big deal because he scheduled a press conference to address his conflicts of interest and then he canceled it and i was trying to play down the members of his team say it's no big deal.
it is aittle bit of a self-created story. nevertheless, these questions will continue to emerge. he should be transparent. either way, the constitution does not say the president can't have conflicts of interest. they just can't accept gifts from foreign leaders. so he can keep his businesses. connell: yes, but when the business comes up, he can choose not to answer and say i don't have to tell you or whatever it may be. >> hideaway has gotten away with that. connell: so far. that's right. i would assume he'll continue down that path. the questions will still be asked. you can do this whole dynamic developing. he'll make the media out to be the villain in all this. reporters rightfully so we'll continue to laugh at because there might be a point that comes up that it's a legit question in there something we should know about. >> also if you look at the way donald trump has taken china,
for example to task for their trade policies further currency manipulation, he singled out certain countries. it's a fair question to say it are you favoring certain countries? are you passing laws are backing certain policies that may be help yr mabe hope your businesses in. we don't know. this question is not going away anytime soon. there are other stories the media could be covering how he plans to renegotiate nafta or plans to end the peace talks in syria. this is kind of a sideshow with this business conflict than it does create a big distraction. trump is very media savvy. not my place to a situation. connell: you can take on the media. shelby has no idea what she's talking about. that kind of thing. >> your fall, guys. connell: thank you on your right. maybe some of these questions would've been answered by now. connell: was another day for it. shelby, thanks.
speaking about their issues, tensions have been rising between certainly the united states and israel. a lot about this yesterday. my reaction from the ambassador to the u.n. next as we continue here "cavuto: coast-to-coast," we will be right back. warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.
>> the two state solution is the only way to achieve a just and lasting peace between israelis and palestinians. >> secretary ker paid lipservice to the unremitting campaign of terrorism waged by the palestinians against the jewish state for nearly a century. what he did was to spend most of his speech blaming israel for the lack of peace. connell: certainly tensions with israel continuing to heat up between the current administration on its layout and benjamin netanyahu's government.
we are joined in the studio by ambassador to the united states, ambassador to the united nations, thank you for coming in. we appreciate it. what a day yesterday. matthews had a day to think about it, secretary kerry's comments in reaction from the nation. when you make of where we are? >> speech was a failed attempt to defend the indefensible. the resolution passed was bad, one-sided, shameful and you cannot correct it with speech. you can only justify it. unfortunately it was not support the peace policies because what they are saying now, they are not happy with the speech as well. we cannot recognize these jewish states. why the u.s. changed its policy and security council, not supporting israel. we regret that we look forward to the new administration. >> your point about timing and the new administration as they
come to the end of 2016 by the 20th of january, this is all changing as you w. does anything that happened yesterday other than giving us to talk about really matter? >> aolely yes. unfortunately security council adopted a resolution in the official line of the u.n. if you read the resolution, it's ridiculous, say in the jewish have no collection with the city of jerusalem. it's illegal. we are used to such accusations from other countries from venezuela, yemen. when you see the u.s. another democracy supporting such language is disappointing. connell: in your conversations which are either going to have her started to have with the new administration from your counterpart with the governor making a late taking over higher up the chain to president-elect trump, soon-to-be president charm. what will you want to see? some defining of the united
nations initiatives? what's a call from israel's point of view. >> we welcome remarks about the u.n. because the u.n. has good ideas to build bridges, promote peace. but what is happening with the u.n. it goes to the bureaucracy and focus on blaming israel for everything. they blamed israel for climate change. people thought about those ridiculous resolutions. we need to see a change in the u.n. >> what types of changes can be put in place. >> take for example different committees at the u.n., which get funding from the u.n. u.n. officials getting paid to incite against israel. we have anti-semitism. we should have a clear message to the u.n. officials, promote peace, built bridges. connell: with an initiative that could be put in place at the new
administration by january or early february that israel is a-ok, not only are they saying the right things are doing the right things. connell: more than 22% of the budget of the u.n. council of them to use for demand to see where the money goes, what they are doing with the money. and the officials, the secretary of the u.n. were anti-semi. all the time and effort to bash israel, we hope it will stop. >> funding should be cut? >> for the u.s. to be sad about it, either cut the funding for the demand. there are a lot of things to do, but not to promote hatred and anti-semitism. connell: overall mr. ambassador, fair to say you're optimistic about the future? >> but despite the ridiculous resolution wprevailed and we will continue with a strong democracy in the middle east. connell: the new administration
makes you more optimistic? >> we are looking forward to the new administration. i've met with president-elect trump in the past and we know that he is connected and we look forward altogether. connell: thank you for coming in today here in the studio. the ambassador whose the israeli ambassador to the united nations joining us now. speaking of the president-elect, and the va -- is one of those cabinet positions hasn't been filled yet in his face is certainly a number of problems. next, trying to fix them all to descend and we are hearing at least, completely different. that when we return.
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connell: are cap 06 series continues with a look at the va. there hasn't been a pic yet and that makes it even more interesting to talk about because the department of veterans affairs has growing talk. the incoming trump administration could move to try to privatize the va. the plan facing resistance including the veterans group retired army sergeant jason beardsley our guest right now to talk about this. we think of privatization question >> great to be with you. the privatization of the va as a whole would be a bad idea. i will tell you this. that is not what is being proposed. people who take reform seriously, who are talking about privatizing the va, but giving
choice to the veteran where they can get their health care, whether it's within the va system or private care outside of that but it's not about privatizing. >> some sort of a public-private move to again provide more choice that i would be a good idea in your view. >> not just a good idea, but a great idea. what is at stake is the health of our veterans. we've got pencil neck geeks and advancements of actuary tables trying to tell veterans who are left are not, combat veterans that they can choose their own doctor. that's ridiculous. they trust us with life-and-death decisions on the battlefield. they trust us with millions of dollars worth of equipment. they have to trust us with the truth of our own health care into a knot in a system that gives you neither option for those who like their health care go ahead and stay with it. we don't want to lose. for those who can't get hope we see abuse after abuse for over two years.
there has to be serious reform. >> don't you think of such a scene the other position has taken so long to fill in a relative basis? they been taken a long time back and forth and told. we are led to believe it comes down to somebody like toby cosgrove as head of the cleveland clinic or possibly a politician like senator scott brown mentioned early on. what type of person -- who would you like to see put in place? somebody who knows the inside of washington, can push for reform politically or medical person. with the right type of daycare? >> great question. and that senator scott round and he served honorably himself. someone who has that passion for who veterans are and what they've been dealing with on the combat field, but also back home inside these bureaucracies. senator brown is the type of person that could do that. bush is a medical doctor could
also help fix some of those problems, but it really takes someone who cares deeply about the issues and knows how to go toe to job with the bureaucracy. we've had scandal after scandal after scandal and the va has gotten away with this. they've had great workers they are under people that do fantastic in the system. someone needs to get in there and do a cultural change. you're going to need a warrior and somebody ready to go to war with some of these entrenched bureaucrats and technocrats to run us into the ground. >> we will see when we get this pic. it's taken longer than other cabinet positions right before or after new year's. before that you go, but they shift gears a little bit. we talked to you about foreign policy. we be sure your thoughts on one of the big foreign policies in the news today and that is serious. we woke up this morning to hear his ceasefire deal that is in place. what do you make of that?
>> i mean, let's see how long it lasts. we know syria is chaotic and i will tell you right now we need our politicians to establish clear political goals on the ground. without that, military generals have their hands tied and they been tight for years now. we really need our politicians to be from the front. we haven't seen this administration do that. they kicked the can down the road so a lot of us are looking forward to watching with president-elect trump's ministration will do with faith and guys like general mike flynn and some of the other fellows at the top of this. kt mcfarland. we have a great group of people. connell: interesting to see if it's more interventionist. some of those people you mention might be in favor of that strategy. if it involved ourselves whereas i don't know the president-elect instincts are that way. maybe just the opposite. >> no, i'll say this much right now. and general james mattis knocked himself testified in front of congress last year.
if we don't define a political objective, we will be harmful to our troops and we are burning them out. we are going to see clear object is before you make decisions of intervention or pulling back or withdrawing. but it's clear right now as i withdraw in the middle east in front of our allies, and one of our partners, in front of security agreements has hurt the region as a whole. the place is on fire. they need clear leadership and i look forward to hearing that this incoming administration will bring to the table. connell: jason, a number of different topics today. happy new year. >> jason beardsley. president obama and president-elect donald trump yet have a smooth things over? i don't know. probably not quite. more transition friction developing. we'll have it for you in 90 seconds.
>> and nicole petallides at the fox business brief. a keen eye on amazon after tech analysts found that a patent was filed by amazon to have a warehouse in the sky. it will resemble a blimp. it will be the airborne fulfillment center. it will fly 45,000 miles in the sky. it can lower down to football games and lucky fans can order from amazon. guess what? an unmanned aerial vehicle can bring you your favorite shirt. the redskins, for example
appeared to draw in five separate two-year period with a something and development. it was a patent filed by amazon. amazon stock down one and a quarter% right now. amazon not making any comment on this particular patent filed by the company. they have plans to start using drugs for delivery. keep your right here on fox business. much more after the break.
connell: we hear from time to time that the president and the president-elect have these phone conversations. apparently they talked yesterday and there was twitter back and forth and some road a that both sides have to deal with. the president signaled that he can speak out against the president he lacked once he becomes president said that could also make things interesting. with all this going on, jesse ernst joins me. i don't know jesse, i think after the president-elect trump one, i don't think we expected necessarily these two to get along. all of a sudden it was like yours president obama being the bigger man, working together and maybe that is starting to fade get what you think? >> they obviously had a very warm meeting at least in the oval office right after the election. a little bit in the last couple weeks of course we haven't seen them going at it head-to-head very much. a little swipe your in there in
terms of russia and the hacking trump being dismissive of that and obama trying to scale down the feuding there. but yeah, it has crept up this week. they talked yesterday and trump said it was a very generic conversation, but i think we'll see some of the swiping back and forth all the way through and adoration. connell: right, through inauguration. what after that? traditionally former presidents will say a thing. we don't hear from george w. bush and while president obama followed that are because of tensions going back to the further questions that are there between these two men personally, might we hear from president obama would you consider his party, doesn't have a clear leader to speak for them right now. >> that's a great point. obama has said he will make himself available to trump as far as advice and he is said to speak he will speak in generic terms or general terms not on specific legislation necessary during transit administration.
but the democrats on harry of these terms, when it comes to the next leader of the democratic party, right now there is no clear leader aside from president obama, so he has to fill this void for a little bit in the party's terms and when it comes to speaking out against trump, he would be the ideal candidate to do that, although as you mentioned it was kind of break precedent. connell: think about it, if the trump administration is going forward, just for example ms looks like something that will have been to repeal and replace obamacare. that is just signature accomplishment. i got this done. other presidents could couldn't get this done. now it is being taken apart, i don't know if he stays quiet on that or not. that could be something to watch. >> trump is a pragmatic type of
figure. even in the first meeting in the oval office and election week they talked about presumably obamacare and after that several of trump walking back his former repeal and replace bit by bit. i think as far as he can, obama will continue to speak to connell: guide him in a direction that he feels he might take some of his advice. at the end of the day, three weeks from tomorrow trump will take the oath of office and from that point forward, obama will have to pick and choose where he's going to speak out and on what issues and intensity of this criticism if he does in fact criticized the next president. >> politically and especially if he cares and obviously he does about his own legacy, he might be better off doing this behind closed doors. over the phone is supposed to speaking publicly and connell: your point about the then-president trump if he didn't have any success, maybe some success after he goes. don't read this part. this part works. maybe the things. i don't know.
>> that's an option for her presidents will speak privately and guide as much as the incumbent wants them to and provide advice. the amount of advice that trump is going to want from obama, at least in the opening days of his administration, maybe it would be helpful just because he hasn't had any political experience before in office. as he gets used to the role of courts, then it's up to him to reach out to obama if he wants to. connell: i don't see the two turning into golf buddies even though they like to play golf. jesse, thanks. good to see you. new jersey before the ball drops. time to bundle it. a winter storm is bearing down. we will have the details on that when we come back.
connell: wild weather. if you're making your sans, new england bracing for a blizzard. apparently get two feet of snow in some areas. fox news meteorologist joining us now and that doesn't exactly make for a great weekend. >> unless you're a skier, which a lot of people to speak and will be using the last weekend to go ski across new england. this is actually a ski storm. not a big travel problems storm because it's all interior sections. rest of the country looking day. this is our big storm we have moved in and write now, kind of part of the energy up against the great lakes and part of it will develop off the coast and kind of turned to a big nor'easter late tonight and tomorrow, but primarily name. right now you see the snow has moved across upstate new york through vermont and new hampshire, but it is rain across the coast. the i-95 corridor, boston through hartford, new york and philadelphia as a rain event, not a snow event.
the snow is going to be falling across the mountains. that's where we have our winter storm warnings in effect and that is interior sections titled on the coast in the highest totals will be where you have the elevation in the mountains or without the ski slopes. kind of a good new scenario. we haven't had huge amounts of snow this year of a drive across new england so this is kind of a beneficial storm. tonight into tomorrow is going to be really windy across cape cod and in coastal areas of main. winds in the 60 to 70 miles an hour range late tonight and tomorrow and that means airports come every problematic in some coastal problems as well going on. temperature wise, the cold air we had here earlier on this month is going to continue to stay way up towards the north into canada at least for the next week. that is good news.
new year's eve in times square 38 degrees. maybe a few clouds of tear, but no major problems as the ball drops. everybody looking prettyood. minneapolis called at 17, but that's pretty typical. dallas circuitry, seattle's little bit chillier than normal in a few mercedes for you. not looking too bad anywhere. connell: that's not too bad. do some skiing in vermont and you won't freeze to that in times square. thank you. good to see you. free up some parking lots. there is an apartment in san francisco offering huber credits. hillary von forrest is in santa monica today. >> hey. that's right because of companies, real estate analysts say over the next 30 years, parking demand is cut in half free up about 75 billion square feet of parking space. >> there is a real opportunity here for real estate developers
and operators to get in front of what we view as an inevitable trend of obesity gets game changer for real estate since the arrival of the car itself. >> one apartment building in san francisco is capitalizing on the popularity of partnering with google or 2100 bucks a month on their uber account. >> it's been wildly popular and really exceeded our expert patients. since we launched in may of 2016 we have over a thousand participants in the program. over 95% participation re. >> their occupancy has almost doubled that the demand for a park parking spot hasn't changed at all. residents a statement its bucks a month attended me some gas money and looking for a parking spot. >> when i was in texas i had to pay for my car. i had to pay for gas. i gave rise to my friends a lot. so that piled up on the expenses. all i have to do worry about is
my rent and that's it. >> that helps us get out of our cocoon relate to live in. real estate analysts say developers are building vast parking lots in finding ways to repurpose the 130 here. connell: interesting. i was going to say it's mostly young people, but that last gentleman not so young. a lot of different types of people taking it manages this? >> yeah, across all ages. people today said they would be willing to consider it i was loved if it fit into their job and lifestyle at home. connell: interesting new approach anyway. thank you, hillary. on the markets today, we've gone these two hours without saying anything about how 20,000. so you're welcome. the reason we've done that is because we are nowhere close to 20,000. 19,811 is where we are. others who don't want to talk about it.
>> and also, one web, 3,000 jobs. done through massa. a terrific guy. which appreciate it. connell: seems like you're saying there wouldn't be as much in the works if not for his conversation? >> i'm fairly certain there would not be as much in the works without trump, without president-elect trump. he is fanning the flames. he is trying to help grow -- he will not build the companies himself. but what he wants to do is inspire, create people to get people motivated to invest and build the jobs. seems to be happening. connell: that is how we started the show with greg wiler, and his company, oneweb, 3,000 jobs
president-elect referred to. basically his point was, yes, some of this was in the works with the japanese investor before the conversations pebegan with the president-elect but those conversations added to it and made for more jobs than we originally thought. good news obviously. good news, trish regan here to take you through the next hour. trish: wee like the jobs. president trump and inner circle are sick and tired of president obama slamming trump every chance he can get. watch. >> it is here we remember when even hatred burns hottest, even when the tug of tribalism is at its most primal, we must resist the urge to turn inward. we must resist the urge to demonize those who are different. >> we feel the difference now. see now, we're feeling what not having hope feels like. >> i'm confident